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<p>Singapore-based <span style="color: #000080;"><strong><a style="color: #000080;" href="http://dealstreetasia.com/tag/ascendas">Ascendas Property Fund Trustee Pte Ltd</a></strong></span> has agreed to acquire six warehouses of <span style="color: #000080;"><strong><a style="color: #000080;" href="http://dealstreetasia.com/tag/arshiya">Arshiya Ltd </a></strong></span>near Mumbai, India.</p></article>

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<p>Singapore-based <span style="color: #000080;"><strong><a style="color: #000080;" href="http://dealstreetasia.com/tag/ascendas">Ascendas Property Fund Trustee Pte Ltd</a></strong></span> has agreed to acquire six warehouses of <span style="color: #000080;"><strong><a style="color: #000080;" href="http://dealstreetasia.com/tag/arshiya">Arshiya Ltd </a></strong></span>near Mumbai, India.</p>
<p>Arshiya has entered into a binding term sheet with Ascendas Property Fund Trustee Pte Ltd, the trustee-Manager of Ascendas India Trust, to acquire 6 warehouses. totalling 832,000 sq.ft. of Arshiya at its Free Trade &amp; Warehousing Zone located at Panvel, near Mumbai, the company said in a filing to the stock exchanges.</p>
<p>The announcement comes close on the heels of Ascendas India completing the acquisition a multi-tenanted IT building called aVance 4 in Hyderabad from Phoenix Infocity for an aggregate consideration of Rs 1.94 billion (S$42.2 million).</p>
<p>Under the terms of the deal, Ascendas will make the payment in two tranches, first Rs 434 crores on signing of a definitive agreement and the balance Rs. 100 crores to be paid over four years on achieving certain milestones.</p>
<p>Arshiya, which operates two Free Trade &amp; Warehousing Zones in the country, plans to use a majority of the funds it will receive to clear a part of its dues to creditors and repayment of other liabilities post debt restructuring. All the six warehouses will be leased back under a master lease arrangement with Arshiya Group.</p>
<p>&#8220;The intended objective of Arshiya is to achieve an asset light model going forward, while Ascendas will potentially be getting a portfolio of income yielding Free Trade warehouses,&#8221; the company said.</p>
<p>&#8220;The term sheet also envisages the financing of the future development on the available surplus land which has development potential of approx. 4 million sq ft within the existing notified area,&#8221; it added.</p>
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<p>Mumbai-based Arshiya operates two Free Trade &amp; Warehousing Zones in Panvel, near Mumbai and at Khurja, near Delhi, where it also operates a logistic park.</p>
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<p>Arshiya has two revenue streams from its clients, rentals and value added services.</p>
<p>&#8220;Arshiya rental income would be significantly higher than the rental payout under the sale and lease back transaction and leave a surplus that would be retained by Arshiya. In addition, Arshiya would also benefit from the entire income from value added services,&#8221; the company said.</p>
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Singapore-based Ascendas Property Fund Trustee Pte Ltd has agreed to acquire six warehouses of Arshiya Ltd near Mumbai, India

Singapore's Ascendas to acquire six Arshiya warehouses in India for $83m

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Singapore's Ascendas to acquire six Arshiya warehouses in India for $83m

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